How to Get a Mortgage When You’re Self-Employed in the UK (2025 Guide)

Getting a mortgage when you’re self-employed can feel like you’re constantly swimming against the tide. Lenders ask more questions. Paperwork takes longer. And even when you’ve got a strong income, it’s easy to get rejected simply because you don’t fit their usual boxes.

But here’s the truth: you can get a mortgage – and a good one – when you’ve got the right team on your side.

In this 2025 guide, we’ll show you exactly how. From choosing the right broker to boosting your borrowing power, here’s everything you need to know about securing a self-employed mortgage this year.

Not every broker is equipped to handle self-employed mortgage applications. They need to know how your income is set up, how your business runs and what each lender expects to see in your documents. Without that insight, your chances of approval can drop quickly.

A good broker will know which lenders welcome limited company directors, contractors, freelancers and CIS workers, and which ones will waste your time. They’ll help you avoid generic credit scoring and instead build a case that actually reflects your financial reality.

That’s exactly what happened for Sally, a successful company director whose bank turned her down flat. We understood her setup, presented her business income the right way and ultimately helped her and her partner Toby move into their forever home.

The way you work changes how your mortgage application is assessed. Here’s what lenders look for across different types of self-employment:

• Sole Traders: Typically assessed using SA302 tax returns and income history.
• Limited Company Directors: Lenders may look at salary, dividends, or full retained profits. Knowing how to present these figures properly makes a big difference.
• Contractors: Often assessed on your day rate or contract terms. Short-term roles aren’t a problem when the broker knows what they’re doing.
• CIS Workers: Can be treated like employees by some lenders, but you’ll need CIS Vouchers/Statements and a steady income trail.

Each type comes with its own paperwork and requirements. Understanding these details and preparing your application accordingly is crucial to unlocking the best mortgage deal.

Before you apply, get a copy of your credit report and share it with your broker. If they’re experienced, they’ll use it to match you with lenders who accept your profile upfront, saving you time, questions and rejections.

New Wave treats your credit file as one part of the bigger picture. The goal is always to find a lender that suits you, rather than forcing you to fit someone else’s criteria.

One of the biggest mistakes traditional brokers make? Ignoring what your business is really worth.

If you’re a limited company director, there’s often more borrowing power in your business than most lenders recognise. We know how to present your full income properly so it reflects the real strength of your business, not just the salary or dividends on paper.

For small business owners, we can use the latest year’s income rather than an average of the last 2 years for affordability, meaning that businesses that have seen a jump in profits will be able to borrow significantly more

That’s how we helped Will, a full-time freelancer who assumed his contract income wasn’t enough. By using his latest tax return and freelance agreement, we secured a mortgage that ticked every box, on terms that worked for him.

A strong self-employed mortgage application depends not only on your income but also on how well prepared you are. Following these steps can improve your chances of approval:

• Clear any outstanding debts
• Keep your income as consistent month to month as possible
• Avoid overdrawing or dipping into reserves just before applying
• Improve your credit score by making payments on time
• Keep business and personal finances separate

These simple changes can help you borrow more and reduce the chances of extra checks from lenders.

Most brokers rely on credit scoring and templated systems. That’s why so many self-employed applications fall through the cracks.

New Wave does things differently. The specialist knowledge our brokers have, matching clients with the right lender first time round, whilst achieving the loan amount in the most tax-efficient way possible, all adds up to mean that we find you the best possible mortgage without the hassle. Our in-house underwriting team reviews every case manually, building your application based on real financial insight, not just numbers on a screen.

This expert approach is what gives our clients an edge, especially when others have already said no.

These are some of the most frequent errors that can hold back your mortgage application – and most importantly, how to steer clear of them:

• Overclaiming expenses might reduce your tax bill, but it can also lower your borrowing power.
• Lenders look for consistent income, so make sure you’re paying yourself regularly.
  Mixing business and personal money causes confusion for underwriters. Keep your finances separate.
• Using an estate agent’s broker can work against you. They often lack specialist knowledge of self-employed mortgages and may prioritise making a sale.

Still wondering how do I get a mortgage if I’m self-employed? You’re not alone – and you don’t have to figure it out by yourself either.

Whether you’re a limited director, contractor, freelancer, sole trader or any other kind of self-employed worker, we’ve got the tools, team and track record to make it happen.

Let’s get to work.

Speak to a Self-Employed Mortgage Expert Today.